30B allows flexibility for energy procurement
October 12, 2008In Massachusetts, municipalities are able to contract with a competitive energy supplier and forgo the request-for-proposals process.
This allows municipalities to seek out competitive electricity suppliers to help design a more strategic energy management program. A customized energy management program could help municipalities not only achieve more cost stability and predictability, but also expand their options to a range of other energy management programs and features such as green procurement, efficiency programs, and innovative online energy monitoring and management features.
The Uniform Procurement Act (Ch. 30B) specifically exempts energy contracts from the standard procurement process as long as the municipality provides a copy of the contract and describes the process used to execute the contract with the appropriate state agencies (Department of Energy Resources, Inspector General’s Office and Department of Telecommunications and Energy).
Municipalities should seek independent legal advice about the applicability of Chapter 30B and its exemptions. But the exemption for energy contracts, where applicable, gives municipal leaders greater flexibility to pursue some of the more innovative energy procurement options currently available on the market.
Municipalities may be eligible to participate in demand response programs, which can provide an additional revenue stream while encouraging ongoing efficiency and conservation efforts that may benefit the municipality for years to come.
With a competitive energy supplier, municipalities can also work with energy experts to design their own green energy procurement plan and explore additional options, such as on-site renewable generation or even the purchase of renewable energy credits.
With energy costs eating away at local budgets, uncertainty in the global fuels markets, a move to reduce carbon emissions, and interest in efficiency measures, some local officials are under increasing pressure to take action. By selecting an electricity supplier of choice that best meets the local needs, municipalities can work to stabilize costs to meet a fixed budget or increase renewable generation procurement to meet environmental goals.
After consulting with municipal counsel, officials in charge of energy procurement should ask the following questions:
• Is an energy contract already in place?
• When does an existing contract expire?
• Which utility or supplier does the community use?
• How does the community currently stabilize prices?
• How has the community budgeted for the future?
• What are municipal environmental goals?
The MMA’s MunEnergy program is designed to help city and town managers understand their options and build a customized energy strategy that will meet their needs. Municipal officials can build an energy strategy that is geared around their risk requirements, taking the worry of energy “surprises” off their plate.
For more information, contact MunEnergy Program Manager Emily Neill at (617) 772-7513 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Written by MunEnergy Program Manager Emily Neill




